The property market has recorded its largest August asking price fall in eight years, with prices dropping 2% as sellers face rising competition and growing pressure to accept below-asking offers.
According to recent Rightmove data, the current average new asking price of a home in the Royal Borough of Kensington and Chelsea is £1,552,970, a fall of more than £95,000 from the previous month.
Separate figures suggest landlords purchasing property in July paid an average of 88.7% of its original asking price.
For investors prepared to move quickly, the conditions are pointing toward an opportunity to secure property at a discount to asking price. Sellers growing more flexible on price and terms have shifted the balance toward buyers who can demonstrate speed and certainty, rather than simply the highest offer.
Cash buyers hold a structural advantage in that environment. Lenders are exercising increased caution around credit risk, and valuation uncertainty can add further complexity to transactions. Buyers who can demonstrate speed and a credible ability to complete are therefore in a stronger negotiating position.
However, bridging finance can allow investors without the full purchase price in cash to compete on similar terms. Bridging loans provide rapid access to capital, typically lasting from a few weeks to a year, and are secured against property or other assets. Because of that security, they tend to attract lower interest rates than unsecured borrowing.
Lender criteria for below-market-value (BMV) purchases vary considerably. Individual lenders take different approaches to assessing purchase price, property valuation and borrowing limits — a distinction that matters more in a market where both valuers and lenders are already applying tighter scrutiny.
"Cash buyers naturally hold an advantage when sellers look for speed and certainty on below-market-value deals," said Kelly Moody, senior property finance broker at Approved Business Finance.
"However, property investors don't necessarily need to have the full purchase price available in cash to compete. By utilising bridging finance, investors can unlock capital in days rather than months, matching the speed and certainty of a cash buyer to secure discounted properties before the opportunity slips away.
"At Approved Business Finance, we have access to a large and diverse range of property lenders who understand below-market-value purchases. Rather than relying on rigid, single-lender criteria, we match each property deal with lenders willing to assess true market value and lend flexibly. That agility allows investors to act decisively without losing high-potential deals to cash buyers."
